Access to affordable finance poses a persistent challenge for micro, small, and medium-sized enterprises (MSMEs) worldwide, inhibiting their potential growth and the economic development of countries that are reliant on these businesses. The rise of the digital economy has opened up new pathways for financing, but has also made digital transformation, which will require some financing, a prerequisite for accessing services, reinforcing the need for a global solution to bridge this financing gap.

To address this issue, the United Nations Development Programme (UNDP), in collaboration with the Monetary Authority of Singapore (MAS) and leading Central Banks across Asia and Africa, is pioneering the adoption of the Universal Trusted Credentials (UTC). Being internationally recognized, UTCs will enable financial institutions to offer faster, wider, and more affordable financial services to underserved MSMEs.

This report outlines the transformative potential of UTCs and describes the UTC framework, potential use cases, coordination structures, recommended policies, and modes of engagement that stakeholders can engage in. This pioneering endeavor by UNDP and its partners is poised to revolutionize MSME access to finance and herald a paradigm shift in the world of MSME financing.